Cardano ADA Falls over 9% in 24 hours: How Far Can It Drop?
The cryptocurrency market experienced a massive crash on Monday, with leading altcoins plummeting double digits. Fears of another slump have investors concerned, as billions worth of funds have been wiped away in just two days. One of the biggest dropoffs amongst altcoins was seen with Cardano ADA, which fell over 9% in 24 hours.
At press time, ADA is down to $0.31, a nearly 10% drop over the last day. The Cardano token has had a rough past week, falling 22% altogether. Trading volume is still high for ADA, but the asset doesn’t have much momentum to start the new trading week.
One of the biggest contributors to Cardano ADA’s recent dip is its strong correlation with Bitcoin. Like many altcoins and other crypto assets, ADA follows BTC as the latter climbs or drops. Bitcoin is the overall leader in crypto by a wide margin, sporting the largest market cap in the entire sphere. Since Bitcoin has crashed 6% today to $54,619.94, the entire crypto market is tumbling. Solana SOL and Dogecoin, two other top-10 cryptocurrencies, have also sunk in price. Thus, the latest drop for BTC has spurred the entire market, including ADA, into a slump.
Additionally, the US economy has also affected the prices of various cryptocurrencies including Cardano ADA. The Fed has yet to decide on an upcoming interest rate cut despite improvements in inflation. This defies projections by crypto experts who were looking for a positive correlation between dropping rates and a bullish market. The July jobs report also suggested that the US economy might be in a worse state than many imagine, with unemployment soaring to 4.3%. Even the stock market is facing considerable losses, with more than $2 trillion being wiped out of the US stock market in the first hour of trading today. These factors indicate that the economy continues to struggle, much to the disadvantage of the crypto market.
Price Prediction: Is The Future Of Cardano ADA Bleek?
All leading indicators indicate a strong ‘sell’ option for Cardano’s native cryptocurrency, ADA. ADA is 78% bearish and 22% bullish in the technical pointers. ADA also signals a strong ‘sell’ option and could shed further value in the charts. The token is in bear territory, and a quick recovery from here could be arduous. The Daily Simple Moving Average (SMA), Daily Exponential Moving Average (EMA), Weekly Simple Moving Average (SMA), and Weekly Exponential Moving Average (EMA) all point toward the ‘sell’ option.
Investors and ADA experts are scrambling to find any signs of improvement in the asset, but to no avail yet. At best, a slight correction could spur the asset back up a tick and it doesn’t fall much further. The worst-case scenario: this is the start of an extremely bearish August for Cardano ADA. There is speculation that the Fed can execute its first interest rate cut in over a year this September. Perhaps that will rescue the crypto market from a further crash. For now, especially for those looking to buy the debt, investors in Cardano ADA should be cautious of its volatile position.